Harvard economics professor Kenneth Rogoff believes that once the Fed raises interest rates, it may be difficult to “control” the economy.
Summer is just around the corner, which means clogging up those air conditioning units.However, with energy cost Cooling the house in the sweltering summer heat will cost more than usual.
The U.S. Energy Information Administration (EIA) estimates that electricity prices for U.S. households will rise by an average of 3.9% this summer. Throughout the summer, the agency expects the average household to spend 0.9% more on electricity compared to summer 2021, according to the EIA.
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“Price increases are primarily driven by supply and demand,” said Nick Loris, vice president of public policy at C3 Solutions. “In particular, natural gas, which provides 38% of our electricity needs, has been operating in an environment of constrained supply and increased demand.”
When the pandemic hit, “prices were low and still low, so there wasn’t much incentive to supply more,” Lloris said. “As the economy reopens, demand increases and outstrips supply. Russia’s invasion of Ukraine made it worse.”
A PG&E worker walks in front of a truck in San Francisco. (Jeff Chiu/The Associated Press Newsroom)
In particular, experts “warned it could be a particularly expensive summer for the Northeast,” Lloris added.
EIA, probably broken price increases in each region, New England is expected to be hit the hardest. Households in the area are estimated to pay 16.4 percent more this summer, according to the agency’s estimates. Meanwhile, households in the Mid-Atlantic are expected to pay 8.4% more this summer, while those in the South Atlantic are expected to pay 6.5% more, according to the EIA.
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Utilities are already warning customers ahead of the summer.
Eversource Energy, which serves customers in Connecticut, New Hampshire and Massachusetts, said: “As New England relies heavily on natural gas for its electricity needs, continued high global demand for natural gas and rising global prices have also driven up the price of electricity supply here. , told Fox Business.
A Con Edison truck works on Wall Street in New York City on April 2, 2020. (Bruce Bennett/Getty Images)
On top of that, the company also noted that electricity supply prices for customers are periodically adjusted twice a year, and that the next proposed adjustment, which must be approved by state regulators, will take place on July 1 in Connecticut and Massachusetts and in August. 1 day. New Hampshire.
For example, in Connecticut, the current rate is 11.57 cents per kilowatt-hour. The proposed rate will be pushed up to 12.19 cents per kilowatt-hour, pending approval.
“As a regulated energy distribution company, we buy electricity for our customers in a competitive wholesale market – prices driven by increased or decreased demand and other global market forces,” Eversource Energy said. “This cost is passed on directly to the customer, the company has no profit, and is subject to review and approval by the appropriate regulatory agencies in our respective states.”
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In addition, the Pennsylvania Public Utilities Commission (PUC) issued a warning earlier this month that “most utilities will adjust their electricity generation prices on June 1.” PUC continued that many customers “will not be able to adjust their electricity generation prices as summer approaches.” Will see a dramatic increase in energy costs, ranging from 6% to 45% depending on their electric utility.”
Workers at Southern California Edison replace a transformer on September 10, 2021 in Santa Ana, California. (Paul Bersebach/MediaNews Group/Orange County Register via/Getty Images)
The PUC said this price change and the increase in electricity use that typically occurs in summer “makes this a good time for consumers to evaluate their energy options”.
PUC encourages customers to “look carefully at their electricity bills to understand the rates they will pay” by June 1.
At the same time, Con Edison served about 10 million people living in New York City And Westchester County also estimates that summer bills, from June through September, will be higher.
The company estimates that residential bills in New York City will be 11-12% higher than last year. In Westchester County, summer bills for residential customers are expected to be about 15% higher.
According to ConEd, a residential customer in New York City used 350 kilowatt-hours of electricity per month from June to September last year, and the average monthly bill was $104.05.
Meanwhile, a residential customer in Westchester County had an average monthly bill of $133.02 for using 500 kilowatt-hours per month during the same period, according to ConEd.
